Investing.com - U.S. consumer spending rose in line with market expectations in February, while core PCE prices came in below forecasts, official data showed on Monday.
In a report, the Commerce Department said that personal spending inched up by a seasonally adjusted 0.1% last month, matching expectations, while personal spending for January was revised down to a gain of 0.1% from a previously reported rise of 0.5%.
Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.
Personal income, meanwhile, rose by a seasonally adjusted 0.2%, above forecasts for a 0.1% gain and after rising 0.5% a month earlier.
Meanwhile, the core PCE price index inched up 0.1% last month, below expectations for a gain of 0.2% and after rising 0.3% in January. The core PCE price index rose at an annualized rate of 1.7%, missing estimates for 1.8% and after a 1.7% gain a month earlier.
The Federal Reserve uses core PCE as a tool to help determine whether to raise or lower interest rates, with the aim of keeping inflation at a rate of 2% or below.
EUR/USD was trading at 1.1172 from around 1.1169 ahead of the release of the data, GBP/USD was at 1.4179 from 1.4173 earlier, while USD/JPY was at 113.43 from 113.48 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 96.20, compared to 96.23 ahead of the report.
Meanwhile, U.S. stock futures pointed to a modestly higher open. The blue-chip Dow futures rose 26 points, or 0.15%, the S&P 500 futures tacked on 4 points, or 0.2%, while the tech-heavy Nasdaq 100 futures advanced 12 points, or 0.27%.
Elsewhere, in the commodities market, gold futures traded at $1,222.70 a troy ounce, compared to $1,222.30 ahead of the data, while crude oil traded at $39.88 a barrel from $39.78 earlier.